Question

With reference to Union Budget, which of the following is/are covered under Non-Plan Expenditure?

1. Defence expenditure

2. Interest payments

3. Salaries and pensions

4. Subsidies

Select the correct answer using the code given below.

(a) 1 only (b) 2 and 3 only (c) 1, 2, 3 and 4 (d)

Answer 1

(c) Non-plan expenditure covers interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, defence, loans to public enterprises, loans to States, Union Territories and foreign governments.